Which term refers to the total cost of a program including all associated expenses?

Which term refers to the total cost of a program including all associated expenses?

• A. Ownership costs timing.
• B. RDT&E Cost.
• C. Sustainment costs.
• D. Program Acquisition Cost.

Answer: (D)

Program Acquisition Cost captures the total price tag of bringing a program into operation, including all phases from initial concept through development, production, and the ongoing sustainment needed to keep it functional. This term is used to reflect every associated expense tied to obtaining and delivering the program, not just a single phase. Development and testing costs, funding for ongoing maintenance, and other lifecycle expenses are all encompassed when you talk about the program’s acquisition cost, making it the best fit for the notion of total program cost. The other terms describe narrower slices: development and testing costs (RDT&E) cover only early work; sustainment costs cover ongoing support after fielding; and ownership costs timing refers to when costs occur rather than the total amount.

Program Acquisition Cost captures the total price tag of bringing a program into operation, including all phases from initial concept through development, production, and the ongoing sustainment needed to keep it functional. This term is used to reflect every associated expense tied to obtaining and delivering the program, not just a single phase. Development and testing costs, funding for ongoing maintenance, and other lifecycle expenses are all encompassed when you talk about the program’s acquisition cost, making it the best fit for the notion of total program cost. The other terms describe narrower slices: development and testing costs (RDT&E) cover only early work; sustainment costs cover ongoing support after fielding; and ownership costs timing refers to when costs occur rather than the total amount.